1. Using the direct write-off method, when is bad debt expense recorded?

1. At the end of each accounting period
2. When credit sale is past due
3. Whenever a predetermined amount of credit sales has been made
4. When an account is determined to be worthless
5. None of the above

2.

1. When allowance method is used, the general ledger account debited to write-off an account is:

1. Uncollectible Accounts Expense
2. Allowance for Doubtful Accounts
3. Accounts Receivable
4. Bad Debt Expense
5. None of the above

3.

1. One accounting issue about the Direct Write-off method, according to your text, is that it is theoretically unacceptable. Why? Because it:

1. Is based on estimate
2. Violates the matching principle
3. Is too difficult to use for many companies
4. Understates accounts receivable on the balance sheet
5. None of the above

4.

1. Zion Architects & Engineers issued on account 120-day, 8% note for $60,000, dated June 13 to Billings Construction company. Calculate and journalize the following:

1. Determine the due date of the note =
2. Determine the maturity value of the note, and =
3. Journalize entries to record:

1. Receipt of the note by Billings Construction
2. Receipt of payment of the note at maturity